"When the past no longer illuminates the future, the spirit walks in darkness." - ALEXIS DE TOCQUEVILLE IN "Democracy in America"
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The current wave of globalization, launched primarily by the United States, is a game-changer and demands a paradigm shift. Most of us have not adjusted to the new reality nor seriously considered making painful changes that challenge our self-enhancing assumptions.
The democratic and prosperous nations, especially, were wracked by the financial and economic crises and began to realize, as former Federal Reserve Chairman Alan Greenspan courageously stated to Congress in 2008, that there was a "flaw in the model ... that defines how the world works. ... I was shocked, because I had been going for 40 years or more with very considerable evidence that it was working exceptionally well."
Suddenly and harshly, it was realized we had not reached "the end of history" but a new and destabilizing frontier.
Developing nations, some of them undemocratic or evolving toward democracy, have accounted for two-thirds of global economic growth over the last five years. According to World Bank President Zoellick, there is now a need for inclusive global economic growth. It is no longer a matter of being charitable to the developing nations; instead, he stated on CNN on May 13 that the World Bank needs to listen to its clients instead of coming to them, as before, with top-down solutions.
Nobel Prize winner Joseph Stiglitz had made the same recommendation after being chief economist at the World Bank. Perhaps the affluent nations are meant to take a cue and begin to listen to the developing nations.
It is encouraging that the Group of Eight quickly evolved to the G-20 nations in 2008 and that central banks agreed to act collaboratively to address the threat to the global economy. It is improbable that the lesson will facilitate the necessary changes unless a new paradigm unfolds. President Abraham Lincoln once said that as our world is new, so we must think anew.